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Medical Device Company, Cardiologist, and Salesman Son Accused of Fraud and Medical Malpractice

Albert Israel vs. Michael Burnam, M.D., Brad Burnam, St. Jude Medical S.C., Inc. (Case #LC085694) alleges that Dr. Burnam negotiated a backroom deal with St. Jude to hire his son Brad Burnam as a medical device sales representative. It is alleged that the deal Dr. Burnam, Burnam, and St. Jude struck was that Dr. Burnam would prescribe St. Jude defibrillators for his patients as a quid pro quo for hiring his son. Burnam also would receive commission points with a guaranteed floor of $200,000 per year. As part of the deal, it is alleged that the doctor would receive compensation for engagements and so-called research projects.

A motion was just filed asking the court for permission to amend the original complaint to ask for punitive damages against Dr. Burnam for prescribing an unnecessary defibrillator for Albert Israel and for the surgery that almost killed him. The complaint alleges that Dr. Burnam placed his own financial interests above the health and well-being of his patient.

A long-time patient of Dr. Burnam, in February 2008 Israel was told by the doctor that he needed a defibrillator. The St. Jude device was implanted in Israel about a week later.

"Because of this unnecessary surgery, Mr. Israel almost died. The defibrillator lead pierced his heart," says Los Angeles plaintiff attorney Jeffrey Wolf of Pocrass, Heimanson & Wolf, LLP. "The St. Jude sales rep on the case and in the operating room during Mr. Israel's surgery was Dr. Burnam's son, Brad."

After Israel's near-death experience, this conspiracy among St. Jude, Dr. Burnam, and Brad Burnam came to light. Former St. Jude sales rep Mark House testified in a deposition of St. Jude's knowledge of this fraud.

"Personally, I find this entire situation reprehensible," says Wolf. "We believe Mr. Israel's experience may be the tip of the iceberg. I find it shocking that people in the medical field would put financial gain over a patient's health."

According to House, St. Jude originally refused to hire Burnam citing ethical reasons and a concern about a conflict of interest. Burnam was then hired by competitor Guidant/Boston Scientific. Dr. Burnam stopped referring patients for St. Jude medical devices, referring to Boston Scientific instead.

In May 2007, St. Jude Medical began negotiating with Dr. Burnam and Brad Burnam to hire Brad Burnam away from Boston Scientific in order to regain Dr. Burnam's business. It is believed that St. Jude wanted to substantially increase its San Fernando Valley business, and Dr. Burnam has a large pool of patients in the valley, particularly because of his involvement with the Los Angeles Jewish Home for the Aging.

In order to hide the conflict, the contract did not include commission points for referrals by Dr. Burnam. Instead, Brad Burnam received commission points for the implanting surgeons regularly used by Dr. Burnam, including Israel's surgeon.

After St. Jude hired Brad Burnam, it was reported that the company realized a 40 percent increase in total market share of High Voltage products, including defibrillators.

After Israel's near-death from the implantation of the unnecessary implantable defibrillator, St. Jude transferred Burnam to the San Diego territory. Dr. Burnam allegedly threatened to withhold his business from St. Jude, and the company returned Burnam to the San Fernando Valley.

House testified under oath that Dr. Burnam contacted him and tried to convince him to say he (House), and not Brad Burnam, was the St. Jude employee in the operating room during Israel's surgery.

Pocrass, Heimanson & Wolf, LLP is a leading medical malpractice and serious personal injury plaintiff law firm in Los Angeles. For information, call 310-550-9050 or visit www.phwlaw.com.

    Geri Wilson
    The Jonathan Group
    626-403-6741
    626-487-2235 (cell)
    gerij9@yahoo.com

SOURCE Pocrass, Heimanson & Wolf, LLP